Daily Report 13 January 2023

SA Company News:

The Johannesburg Stock Exchange All-Share Index closed 0.13% higher at the 78 627 level, at new record high. Banks, financials and food producers were the big winners, adding 1.74%, 1.37% and 0.52%, respectively.

Shareholders of investment group AfroCentric, which owns medical aid administrator Medscheme, have approved an offer from Sanlam. The scheme consideration will see Sanlam acquire no more than 64.45% of Afrocentric, and no less than 55%.

 

SA Economy:

The National Energy Regulator of SA (NERSA) has granted Eskom an electricity tariff increase of 18.65% for 2023/2024. It also approved a 12.74% tariff increase for 2024/2025 financial year.

The Finance Minister, Enoch Godongwana also said that the government will take on Eskom’s debt in a phased process, with further details to be announced in February’s annual budget.

 

​Global Economy:

The US annual inflation rate slowed for a sixth straight month to 6.5% in December 2022, the lowest since October of 2021 and in line with market forecasts. It follows a 7.1% reading in November. The core inflation rate slowed to 5.7%.

China’s exports fell 9.9% year-on-year in December 2022 to $306.08 billion, compared with market consensus of a 10% fall and following an 8.7% drop month earlier.

China’s trade surplus dropped to $78 billion in December 202 from $93.7 billion in the same month.

The Baltic Exchange’s dry bulk sea freight index, which measures the cost of shipping goods worldwide, fell 6.4% to a four-month low of 976 points, as shipping activity remains subdued at the start of the year.

 

Global Company:

The FTSE 100 closed 0.89% higher at 7 794, led higher by real estate, financials, and materials stocks.

The Hang Seng Index is trading flat at 21 528.

In China, the Shanghai Composite is up 0.45% to 3 181.

The Dow Jones Industrial Average closed 0.63% higher to 34 189, while the S&P 500 was up 0.34% to 3 983. These moves came as the December CPI report showed that the annual headline and core inflation rates in the US slowed.

Shares of Disney rose 1.5% after the company announced that it has named Mark Parker, the executive chairman of Nike, its next chairman of the board.

 

Commodities:

Gold is up 1.1% to $1 895/oz, while Platinum is higher by 0.07% to $1 074/oz.

Brent crude was 1.62% higher at $84.03 a barrel.

 

Currencies:

The rand traded at R16.75 against the US Dollar, R20.41 against British Pound and R18.15 against the Euro.

The Euro is slightly firmer against the US Dollar to trade at $1.0835.